SHIKIGAKU : Financial Results for the Fiscal Year Ended February 28, 2022

Financial Results for the Fiscal Year Ended February 28, 2022 Full Year Financial Report

April 14, 2022

Tokyo Stock Exchange Growth Market（7049）

Table of Contents

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Financial Summary for the Fiscal Year Ended February 28, 2022

Financial Forecast for the Fiscal Year Ending February 28, 2023

Medium-Term Business Plan (FY2023-FY2025)

©2022 SHIKIGAKU CO., LTD.

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1. Financial Summary for the Fiscal Year Ended February 28, 2022

Performance Highlights

• Landed record high sales and operating profit despite continued deliberate upfront investment in personnel and recruitment and training costs.

Segment	Summary		Topics
	Net sales: 3,823 million yen（YoY+52.6%	100.7％ of	• Organization consulting business performed well and contributed
	planned）		to sales growth.
Consolidated	Operating profit: 359 million yen （YoY+161.8% 89.9 of	• Record operating profit, but not achieved as planned due to
plan）		deliberate upfront investment in recruitment.
	Net income*1: 224 million yen （-41 million yen in previous	• Net profit for the year landed above plan due to a gain on the sale
	year, 147% of planned)		of investment securities following the exit of a VC fund investee.

Organization Consulting

Net sales: 3,322 million yen（YoY+49.5%)

Operating profit: 565 million yen（YoY+147.1%)

Net sales per consultant: 3.5 million yen/month（QoQ -7.9%)

Number of consultants: 73 as of the end of February 2022 *73 as of April 2022

Order backlog：756 million yen（+2.5% compared with end of previous fiscal year)

*Order backlog for management consulting only

• Platform services
  Monthly net sales of SHIKIGAKU Basic Services progressed, surpassing the plan（124.9％ of plan）
  Churn rate remained below expectations
• Number of consultants
  Recruitment of candidate consultants moved well. Challenges remain in training of candidate consultants.
• Shikigaku Career annual sales: approx. 100 million yen (YoY+341%)

	Sports	Net sales：285 million yen		• Sales from sponsor order were strong, up 63.4% YoY
	Operating profit：-126million yen	（4th quarter: +9 million	• Delays in the delivery of contract business sales, but new sources
	Entertainment
	yen)		of revenue also contributed with sales reaching 112.8％ of plan
	VC Fund	Investments in: 6 companies(5 VC and 1 Hands-on Support)）	• Decided on first investment case of Shinsei SHIKIGAKU Growth
	Investment decisions made: 2 companies	Support I, L.P.
	Hands-on Support	→Dispatch of one consultant as a company director for start of
	Investments being considered: 1 company
		hands-on support
	*1 Net profit attributable to owners of parent company		2
©2022 SHIKIGAKU CO., LTD.

1. Financial Summary for the Fiscal Year Ended February 28, 2022

Consolidated Statement of Profit and Loss

• Pursuing proactive upfront investment in personnel and recruitment education as a foundation for medium- and long-term growth.
• Gross profit margin in organization consulting business moved in the high 80% range.

（Million Yen）	FY2021/02	FY2022/02	YoY		FY2021/02	FY2022/02	YoY		FY2022/02	Progress rate
4Q（QTD）	4Q（QTD）			Plan
Net sales	809	1,015	25.4%		2,506	3,823	52.6%		3,798	100.7%
Operating	709	955	34.7%		2,368	3,463	46.2%		3,398	101.9%
Expenses＊1
Personnel	294	438	49.0%		1,065	1,598	50.1%		1,525	104.8%
Expenses/Recruitment
education expenses＊2
Advertising expenses	98	97	-0.5%		331	395	19.4%		435	90.9%
Rent expenses on land	27	36	34.9%		101	140	37.9%		113	123.6%
and buildings
Team operating	98	84	-14.4%		258	287	11.3%		241	118.8%
expenses/Box-office
expenses
Outsourcing expenses	47	75	57.9%		149	343	129.5%		325	105.5%
Other operating	142	222	55.8%		462	698	51.0%		757	92.3%
expenses
Operating profit and loss	100	82	-18.3%		137	359	161.8%		400	89.9%
EBITDA	117	99	-15.2%		199	429	115.9%		470	91.4%
Gross Profit Margin	69.7%	74.6%	-		74.5%	72.3%	-		75.4%	-

*1	Operating expenses=cost of sales＋selling, general and administrative expenses
*2	Personnel expenses=consultant personnel expenses＋expenses for personnel other than consultants	3
©2022 SHIKIGAKU CO., LTD.

1. Financial Summary for the Fiscal Year Ended February 28, 2022

Summary of Profit and Loss by Segment

• Organization Consulting: Platform Services progressed, exceeding the plan, leading to an increase in net sales YoY of 124.9%.
• Sports Entertainment: Sponsorship orders increased substantially from the previous fiscal year to 155 million yen (YoY ＋63.4%), which led to the increase in net sales YoY.
• Contract development: Due to withdrawal from the contract development business and reduction in projects, sales have decreased YoY.

（Million Yen）		FY2020/02			FY2021/02				FY2022/02
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	YoY
Net sales	365	414	472	468	426	540	729	809	844	957	1,006		1,015		25.4%
Organization	365	414	472	468	426	515	639	640	729	828	890		873		36.3%
consulting
Sports Entertainment	-	-	-	-	-	25	47	119	51	39	72		121		2.0%
Contract development	-	-	-	-	-	-	42	50	62	89	43		20		-59.1%
VC Fund	-	-	-	-	-	-	-	-	-	-	-				―
Hands-on support	-	-	-	-	-	-	-	-	-	-	-				―
Segment profit	53	80	85	63	-32	8	61	100	71	129	76		82		-18.3%
Organization	53	80	85	63	-32	39	103	118	121	173	161		109		-7.8%
consulting
Sports Entertainment	-	-	-	-	-	-31	-52	-6	-39	-35	-60		8		―
Contract development	-	-	-	-	-	-	-1	-3	-4	-9	10		-9		―
VC Fund	-	-	-	-	-	-	-	-	-	-13	-15		-18		―
Hands-on support	-	-	-	-	-	-	-	-	-	-0	-1		-1		―

*1	As the Sports Entertainment business generates sales of merchandise and ticket revenue during the B.League season (October to April), the net sales and operating profit tend to be skewed toward the Company's second half of the
*2	fiscal year (September to February).
Since Fukushima Sports Entertainment Co., Ltd. has been consolidated since Q2 of the fiscal year ended February 28, 2021,the figures of the Sports Entertainment business before Q1 of the fiscal year ended February 28, 2021
*3	are shown as "-".
Since MAGES.Lab (currently SHIKI Lab Inc.) has been consolidated since Q3 of the fiscal year ended February 28, 2021, the figures for the Contract development business before Q2 of the fiscal year ended February 28, 2021
	are shown as "-".	4
©2022 SHIKIGAKU CO., LTD.